The Industrial and Commercial Bank of China (ICBC) Karachi Branch on hosted an event marking the 10th anniversary of the renminbi’s (RMB) internationalization in Pakistan, highlighting a decade of progress since the establishment of the local RMB clearing mechanism. As Pakistan’s designated RMB clearing bank, ICBC Karachi reviewed key milestones achieved since 2015, when the branch first received approval to build the country’s RMB clearing system.

According to Gwadar Pro, over the past decade, ICBC Karachi has opened RMB accounts for all 22 major Pakistani banks licensed for foreign-exchange operations. This year alone, the branch has handled RMB clearing worth 477.9 billion yuan, up 23 percent year-on-year; RMB settlement totaling 1.475 billion yuan, a surge of 159 percent; and market-making transactions reaching 18.7 billion yuan, up 16 percent. RMB business in Pakistan has maintained robust growth momentum, the bank said.

Speaking at the ceremony on behalf of the State Bank of Pakistan (SBP), Executive Director Muhammad Malik said Pakistan has established a comprehensive regulatory framework to support the use and investment of RMB. Malik said the RMB has great potential in Pakistan and is expected to benefit all stakeholders further, noting that the country already has a sound regulatory system in place to facilitate RMB usage and investment.

SBP has rolled out multiple initiatives to promote RMB awareness, strengthen clearing and settlement capacity, and ensure that local enterprises and banks fully understand the advantages of conducting transactions in RMB, he added. In November 2022, the the People’s Bank of China (PBOC) authorized ICBC’s Karachi branch to serve as Pakistan’s RMB clearing bank. However, Pakistan’s RMB clearing and settlement operations date back to 2015.

China has remained Pakistan’s largest trading partner for many consecutive years, and the use of the Chinese currency has played an increasingly important role in supporting bilateral trade. According to PBOC data, RMB cross-border receipts and payments for China-Pakistan goods trade reached 19.4 billion yuan in 2024, accounting for 23 percent of total trade-related settlement in both domestic and foreign currencies.

Credit: Independent News Pakistan (INP) — Pak-China